Skip to comments.Gannett Posts Profit Despite Continued Slide in Advertising (I'm not dead yet!)
Posted on 07/15/2009 5:13:39 PM PDT by Erik Latranyi
McLean-based Gannett -- the nation's largest publisher of newspapers, including USA Today -- today said it posted a $70.5 million profit in the second quarter, compared to a loss last year, despite a continue slide in advertising revenue.
The results were better than analysts had expected and sent Gannett stock soaring; it closed up 29 percent to $4.50 per share today.
The profit came from cost-cutting, not growth. And the company predicted that revenues would continue to dip in its broadcast unit next quarter.
(Excerpt) Read more at washingtonpost.com ...
Music to my ears.
SHOCK: Gannett makes profit, truth hardest hit
Revenues are falling faster than operating expenses. Reckon how that’s going to come out?
On Wall Street, the Dow was up today +257 on light trading. There were a lot of Mom and Pops today who bought into the market but they're going to get hammered once again. Who in the heck would buy a newspaper stock, except some trader looking to unload onto a new buyer.
My local rag is a Ganett publication. It is no more than a stopover for new reporters who have no idea of the locality.
Good point but there’s always hope for a takeover and some Moms and Pops do trade as well. Personally I haven’t seen their balance sheet so I don’t know if the theory is applicable with Gannett (GCI), but Ben Graham did believe in cigar butts. Not that I would touch the stock myself though.
"I'm not dead yet".